What is a Constraints ?
• A constraint is a limitation, restriction, or condition that
restricts the range of possible solutions or actions in a
particular situation.
• In various fields such as mathematics, engineering,
computer science, and project management, constraints
play a crucial role in defining the boundaries within
which a problem must be solved or a task must be
completed.
• Constraints can be internal or external to the system.
Types of Constraints
• Physical Constraints
• Time Constraints
• Resource Constraints
• Technological Constraints
• Legal and Regulatory Constraints
Theory of Constraints
• The Theory of Constraints is a methodology for
identifying the most important limiting factor (i.e.,
constraint) that stands in the way of achieving a goal and
then systematically improving that constraint until it is no
longer the limiting factor.
• In manufacturing, the constraint is often referred to as a
bottleneck.
• Dr. Eliyahu Goldratt conceived the Theory of Constraints
(TOC) in his book titled “The Goal”.
• One of the appealing characteristics of the Theory of
Constraints is that it inherently prioritizes improvement
activities.
The Five Focusing Steps
Step Objective
Identify Identify the current constraint (the single part of the process that limits the rate at which the goal is
achieved).
Exploit Make quick improvements to the throughput of the constraint using existing resources (i.e., make the most
of what you have).
Subordinate Review all other activities in the process to ensure that they are aligned with and truly support the needs of
the constraint.
Elevate If the constraint still exists (i.e., it has not moved), consider what further actions can be taken to eliminate
it from being the constraint. Normally, actions are continued at this step until the constraint has been
“broken” (until it has moved somewhere else). In some cases, capital investment may be required.
Repeat The Five Focusing Steps are a continuous improvement cycle. Therefore, once a constraint is resolved the
next constraint should immediately be addressed. This step is a reminder to never become complacent –
aggressively improve the current constraint…and then immediately move on to the next constraint.
The Thinking Processes
• TOC includes a sophisticated problem solving methodology
called the Thinking Processes.
• These tools are used to analyze complex problems, develop
solutions, and implement changes in a systematic manner.
• There are several key components of the thinking process in
TOC:
Current Reality Tree (CRT)
Evaporating Cloud (EC)
Future Reality Tree (FRT)
Transition Tree (TT)
Applications of TOC
There are various applications of TOC:
Manufacturing
Supply Chain Management
Project Management
Service Industries
Retail
TOC - Advantages
• Improves capacity decisions in the short-run
• Aids in process understanding
• Avoids local optimization
• Improves communication between departments
• Reduction in inventory
• More productive machine and more flexible
• Ability to meet shorter lead time
• Better customer service and relationships
TOC - Disadvantages
• Negative impact on non-constrained areas
• Ignores long-run considerations
• May lead organization away from strategy
• Not a substitute for other accounting methods
• Temptation to reduce the capacity
Conclusion
TOC was originally designed for improving manufacturing
processes. However, it has been adapted and successfull
y used in many industries including; Marketing, Service
Industries and Information Technology
